Caribbean received billions in foreign direct investment in 2013 – ECLAC

us_dollars_508583606SANTIAGO, Chile, Friday May 30, 2014, CMC – The Economic Commission for Latin America and the Caribbean (ECLAC) says the region notched a new historic high in 2013 by receiving US$184.92 billion in foreign direct investment (FDI), 5 percent more than in previous year in nominal terms.

The new report, “Foreign Direct Investment in Latin America and the Caribbean 2013,” unveiled at ECLAC’s headquarters on Thursday, said that while global FDI flows climbed 11 percent in 2013 from the previous year, Latin American and Caribbean’s participation in the world’s total stayed at 13percent.

The report said that FDI towards the region has grown steadily since 2003, with the exception of 2006 and 2009. But in proportion to the size of the economies, the report said FDI has remained practically stable since 2011.

“This growth has been sustained by an increase in domestic demand and high prices for commodities exports,” ECLAC said.

It, however, said,in the last two years, the economic expansion has slowed and metal prices have fallen.

ECLAC, therefore, forecasts that FDI flows will diminish slightly in 2014.

But, despite this, the UN agency said that transnational companies “still show great interest in the region’s long-term growth in consumption and in the exploitation of natural resources.”

According to the new study, 82 percent of FDI flows go to the region’s six biggest economies, although, in relative terms, they have more impact in smaller nations, especially those of the Caribbean.

Brazil receives 35 percent of the FDI that comes to Latin America and the Caribbean.

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